The Rundown - Tesla Rises on Trump's Plan to Ease Self-Driving Rules, Nvidia Faces AI Chip Delays

Episode Date: November 18, 2024

Stock market update for November 18, 2024.

Public.com presents the rundown your daily market update in five minutes. My name is Zaid Admani, and today is Monday, November 18th. In today's episode, we recap last week's brutal week in the markets and tell you what to look forward to this week. We also tell you why Tesla investors are excited about new regulations and invidious challenges with their new AI chip. Then stick around to the end of the show to find out how many people tuned in to watch the Jake Paul versus Mike Tyson boxing match, and why Netflix might not be ready for live streaming. All right, let's go. Well, guys, the stock market is coming off a pretty tough week.

Both the S&P and NASDAQ had their worst week since September. The S&P dropped more than 2.1% and the NASDAQ dropped 3.2%. Markets seem to be experiencing a post-election hangover and taking back some of the gains we saw two weeks ago after the election. Except for crypto, where we haven't seen much of a pullback there. Bitcoin is still hovering above $90,000. Ethereum is above $3,000, and Solana has been climbing recently nearing $250. That's close to its all-time highs.

So stocks are seeing a pullback, crypto, not so much. By the way, we have a pretty stacked week coming out. We're getting earnings from some heavy hitters. Walmart reports on Tuesday before the market opens. Target and T.J. Max report on Wednesday before the market opens. Investors like to pay close attention to these retailer earnings to see how overall consumers are doing. But the one that everyone's going to be paying close attention to is Nvidia. They report earnings on Wednesday after the market close.

Nvidia's earnings will tell us where we are in the AI boom. Like, can Nvidia continue their insane growth or are there going to be signs of a slowdown? I feel like I say this every quarter, but Nvidia's earnings just always feel like a make-or-break moment, you know? And Nvidia seems to always pull through. They're consistently beating earnings, at least over the last couple years. I'm kind of nervous to find out what happens when they don't beat expectations. Hopefully that doesn't happen this week, but yeah, we'll see. I'll recap the NVIDIA earnings along with all the other big ones here on the rundown.

So if you're new to the podcast, you picked a great week to start listening. And for all my day ones out there, you guys already know how hyped I get for NVIDIA earnings. Oh, I'm so pumped and kind of nervous if I'm being honest. Let's run through some headlines. Let's start with Tesla. Now, here's a stock that has been ripping since the election and doesn't seem to be slowing down. Shares are up again this morning after Bloomberg reported that Trump is looking to see. set up new laws for self-driving cars. And I have a feeling that the CEO of Tesla, Elon Musk,

being BFFs with the president-elect lately, might have a couple things to say on what these new laws and regulation should look like when it comes to self-driving cars. Remember, Tesla is going all in on self-driving, which includes their robotaxies. They showed off the prototypes a few weeks ago. It's kind of underwhelming, but that's Elon's vision for Tesla's future. Now, currently, the National Highway Traffic Safety Administration, or the NHTSA, is in charge of regulating self-driving cars, and they've been kind of a pest to Tesla and the self-driving industry in general. The organization was reported to be investigating Tesla in October over multiple crashes of its self-driving cars. I think the biggest bottleneck is that the NHTSA has only allowed

2,500 autonomous vehicles a year, and past attempts to increase that number haven't been allowed. So maybe with these new laws, that'll help paint a more clear path for self-driving cars in the self-driving industry. So this could end up being advantageous not just for Tesla, but other self-driving companies like Google's Waymo. But again, I'm sure Elon Musk will have a lot of influence on what these laws will look like. And that's why Tesla investors are pretty excited right now. Tesla shares are up 6% this morning on this news. Let's shift gears and talk about Nvidia. We mentioned them a bit in the start of the episode. They're reporting earnings on Wednesday. And now there's reports that there's been a design flaw in Nvidia's latest blockbuster AI chip called

Blackwell. Invita is reportedly dealing with a design flaw that is causing overheating issues. This is according to reporting from the information. And in order to correct this issue, NVIDIA has been asking suppliers to change the design of its server racks, which could end up causing more delays. Now remember, the release of the Blackwell chip was previously pushed back by one quarter due to engineering issues. So another delay could test investors' patience because the Blackwell chip is what's supposed to re-accelerate Nvidia's sales growth.

Right now, expectations for Nvidia's earnings is the slowest sales growth in six quarters. Wall Street is expecting revenues to jump by 83% from a year ago, which would be the first time that their sales growth fell below 100% after topping that mark for five straight quarters. So things are slowing down for Nvidia and they really need this Blackwell chip to pick things back up. So yeah, we'll see what Nvidia says on Wednesday during their earnings call and maybe they'll provide investors a update on the status of the Blackwell chip. Let's talk about some stocks making moves today. Shares of Super Micro are jumping as investors await the company's last day to file its delayed quarterly reports, or else they might be delisted from the NASDAQ. I mean, at this point, you guys know the story of Super Micro. We've talked about them a lot.

They're potentially doing something shady. Their auditor quit on them, and they haven't filed a bunch of regulatory reports. They're 10Q. They're 10K. And today's the last day for them to file that. Otherwise, the NASDAQ exchange will delist their stock. NASDAQ gave them 60 days to do it. And today is the final day.

They either have to file the reports or at least get some sort of extension. And I think the markets are expecting that one of those two things will happen. As a result, Super Micro shares are up 11% on this news. I'm not going to allow. I'm getting kind of sick of talking about Super Micro. Another stock having a great day is Liberty Energy. Their stock is on the rise after its founder, Chris Wright, was nominated by President-elect Donald Trump to lead the Department of Energy.

Liberty is a company that offers oil field services based in Denver, and their shares are up around 5%. See, there's founder and CEO Chris Wright and the potential future energy secretary is seen as someone who will push forward with Trump's promise to boost fossil fuel production here in the states. And what's notable is that the energy secretary also oversees the U.S. nuclear program. And Chris Wright is on the board of a company called Oclo, which is a nuclear energy company. So shares of Oclo are also up in pre-market trading.

Now, a couple of stocks not having a great day today are Uber and Lyft. Their shares are down this morning after the news about Donald Trump's plans for news. self-driving laws and regulations. I guess investors are worried that if Tesla's robotaxy business takes off, that Uber and Lyft won't be able to compete. Lyft stock is down more than 3% on this news, and Uber stock is down around 2%. Let's wrap the show with a fun fact. According to Netflix, more than 60 million households tuned in to watch the Jake Paul versus

Mike Tyson boxing match on Netflix on Friday night. In fact, Netflix said that their live stream peaked at 65 million concurrent streams. So yeah, it was a huge event for Netflix. I kind of wish the fight started early though because as someone who just turned 33 years old, it was kind of tough for me to stay up so late. And the fight itself was kind of tough to watch, to be honest. I mean, Mike Tyson's 58 years old and he was kind of getting beat up by Jake Paul.

Jake Paul did end up winning the fight. But yeah, I say overall a success for Netflix. Except for the fact that their live stream kept dropping and buffering and having issues for a lot of people. I saw a lot of complaints on social media about people not being able to stream the fight. So Netflix needs to figure out this live streaming. because they have a couple more big live events coming up. Netflix is streaming two NFL games on Christmas this year.

And Netflix just announced that they got Beyonce to perform at the halftime of the Houston Texans versus Baltimore Ravens game. Beyonce is from Houston, my hometown as well, so shout out Beyonce. But yeah, Netflix needs to figure out this whole live streaming issue because we can't be having live streams drop like that in the middle of a football game.

Well, all right, guys, that's the rundown for today. We got a big week coming up with Nvidia earnings. And I also want to know how the markets will react this week. You know, we had the post-selection boom, then we had a cool off last week. Where are the markets going to go this week? Also, if you guys want some bonus rundown content, go take a peek at your podcast feed. We dropped an episode on Saturday about Amazon's Project Kuiper. It's an 8-minute deep dive on Amazon's plans to compete with Starlink.

We're going to start doing more of these weekend deep dives. So keep an eye on your podcast feed every Saturday for those. And if you guys enjoyed today's episode, consider giving us a five-star rating on Apple on Spotify. Leave a comment on Spotify. Vote in today's Spotify poll. All that engagement really helps us out and it helps other people find the show. I mean, today is my 33rd birthday, and this podcast is one of the coolest things that I've ever done. And we've got some more great content that we're cooking up for you guys.

Thank you guys again for listening. Shout out to Mike and Connor for all the help behind the scenes. And we'll see you guys back here tomorrow. This is the rundown. Your real-time resource for news events and trends in the markets. All views presented in the show reflect the opinions of the guests. You should not take any mention of a publicly traded security as recommendation to buy, sell, or hold that security. Run-down guests are not financial advisors and are not affiliated with public holdings or its subsidiaries.

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